Final answer:
Economic situations were analyzed to determine how they affect the demand and supply of goods such as gasoline, taxis, pumpkins, and corn, considering factors like housing developments, strikes, crop yields, and consumer preferences.
Step-by-step explanation:
To label the situations correctly for each economic condition, we must analyze the factors influencing the demand and supply for each case:
Gasoline: If a new housing development is built and several new gas stations are constructed, the demand for gasoline is likely to increase due to the higher number of residents needing gas. The supply of gasoline also increases because of the additional gas stations. Thus, the scenario is that both demand and supply both increase.
Taxis: When public transit workers go on strike during a holiday weekend, demand for alternative transportation, such as taxis, increases. No mention is made of a change in the supply of taxis, so we can assume that only the demand increases.
Pumpkins: An early frost that destroys the pumpkin crop leads to a decrease in the supply of pumpkins. The negative report on pumpkins as inferior to zucchini for pies could cause a decrease in demand. Therefore, in this scenario, demand decreases and supply decreases.
Corn: Reports of corn allergies and a large crop may seem contradictory. While media stories about allergies may decrease demand, the unusually large crop would increase the supply. Thus, this example matches with demand decreases and supply increases.
Remember, shifts in the demand or supply curves signify changes in the demand or supply due to external factors, while movements along the curves indicate changes in the quantity demanded or supplied in response to price changes.